UK Approves Korean Air-Asiana Merger... Only US, EU, and Japan Remain

11 Countries Completed Out of 14

[Asia Economy Reporter Oh Gyumin] Korean Air announced on the 1st (local time) that it has received merger approval from the UK competition authority (CMA, Competition and Markets Authority) regarding the acquisition of Asiana Airlines. Only approvals from the US, EU, and Japanese competition authorities remain for the merger.

The CMA stated that it has, in principle, accepted the voluntary remedies submitted by Korean Air on November 28 last year. Subsequently, it gathered market opinions on the voluntary remedies. Ahead of the approval decision on January 26, the review period was extended until March 23 for additional examination, but a decision was made earlier than that.

Korean Air explained that the UK competition authority’s approval decision means that the remedies submitted by Korean Air were judged to alleviate concerns about competition restrictions. Previously, Korean Air proposed that British airline Virgin Atlantic launch a new Incheon-London route. The CMA required Korean Air to provide Virgin Atlantic with up to seven weekly slots (airport takeoff and landing times) at London Heathrow Airport. Currently, Korean Air holds 10 weekly slots at Heathrow Airport, and Asiana Airlines holds 7 slots.

The company expects this approval decision to have a positive impact on the reviews by the US, EU, and Japan. In the case of the EU, after about two years of preliminary consultations, the formal review began on January 16. The second phase of the review has been underway since February 20.

In the US, the competition authority decided to take more time for review. In Japan, preliminary consultations with the competition authority are ongoing, and once these consultations are completed, the formal notification will be submitted and the remaining procedures will be finalized.